Credit Suisse being sued by Mozambique

Mozambique has launched a lawsuit against Credit Suisse, which had provided a loan to the country.

Credit Suisse is being sued along with shipbuilder Privinvest and three individuals for potential breaches of commercial contracts, according to papers filed to the High Court in London.

It is alleged the Mozambique government took out loans amounting to $2 billion to buy a tuna-fishing fleet and surveillance ships, but hid the transaction from parliament and international donors. The case revolves perhaps more around US Department of Justice revelations that three former Credit Suisse workers orchestrated the fake $2 billion in maritime projects as a front.

An independent audit found that a quarter of the loan amount was “diverted”, and is unaccounted for. The USA alleges at least $200 million was spent on bribes and kickbacks, including $12 million on Mozambiquean ex-finance minister Manuel Chang, who allegedly signed off on debt guarantees.

The 3 Credit Suisse employees were arrested in London in early January 2019 and their extradition to the US is due to be heard shortly.

Even after years of investigation, it isn’t fully clear if and how Credit Suisse did anything wrong in connection with the loans deal that rocked Mozambique. The country has nevertheless decided to file a suit now against the bank in London. This is the first public lawsuit launched in connection with the scandal.